4:41: Hastings: As an example, I have Comcast, and it has sports, which is a big sector. The news is a big spectacle. And there are events on TV. There was a tremor in the cable numbers, but it was the recession, not Netflix.

Netflix is on-demand, and it's only $8 bucks a month. If you only watch once a week, you'll stick around. If you use it regularly, you'll rave to your friends about it. That's what we want to be.

4:44: Anderson: Is future of TV real time?

Hastings: Yeah, value has been evolving towards sports for a while because of the DVR. Value migration has been more and more sports. We offer more than time shifting tho. Personalization. 10-20,000 movies. In that 100 anyone of you would love.

4:46: Anderson: You are on a lot of devices, what do people want?

Hastings: First stage is getting Netflix in consoles, then it's in TVs. About 1/2 of tvs sold today are web enabled, that will grow to 2/3 then 100%. TVs will be running Android, or something like that, with an app store. TV experience will follow smartphones with apps as channels. Your cable provider will be an app.

4:48: Hastings: There was many things about Netflix, we had to set up the whole business for streaming. But in 2000, dial up was king, AOL was king. So we took a spreadsheet, and we figured in 2012, you get 15 megabits, which is about what you'll have. It has followed moore's law almost exactly.

If you drag out spreadsheet to 2021, you'll have a gigabit to a home. It may sound crazy, but Google is doing it in Kansas City. In a long time frame, this is all predictable.

4:52: When we saw YouTube, we decided to start working on streaming. We've had so much fun working on our streaming.

4:53: On DVD, there's a quirk in copyright law that we can buy a DVD and then rent it out to people. Sweet deal for our side of the table. It's like buying a car or a house and renting it. It's a physical good, not IP. In streaming, we have to get rights.

4:54: We'll be getting more and more content as we get more subscribers, because we can afford it.

4:55: Hastings talking about "windows" for movie releases. We play in the syndication window on TV.

Anderson: Who is most threatened by you? HAstings: in short term people are worried, but we have had no effect on P&L. In the long run, fears we become a internet cable company, or we get sports, or we get current season shows. The cable idea is bad, it would start an Armageddon and we would not survive. How do we get big enough to grow, but not so big we incite people.

4:57: Anderson: Slow pace of international expansion ... you went to Canada ... when you look at other markets, what do you look for? Hastings: We launched Canada, we think we'll be break even in one year. Encouragement it launch in other markets. We haven't announced our second market yet. Look for high broadband, and eager consumers.

Over time, the internet is spreading like wild. I was in Costa Rica on a surf trip, relatively isolated, but there was DSL. 2 megabit DSL. I was surprised. Government laid fiber down the dirt road. They are prioritizing internet over paving the roads. This is not atypical. In Brazil, India, you see this.

5:00: Rivals like Apple and Amazon? Hastings: Ask consumers about iTunes/Amazon, they say iTunes does music, I love it. It does movies? Ask about Amazon: I love it for books, it does video? For us, we're all video. Hulu has done a good job of standing for video from the start.

Apple, Amazon, Microsoft have deep pockets, and reason is they are judicious, they dont tend to throw it away. They don't tend to chase companies. They find bold new ways to innovate.

Hastings on Amazon: We've talked to Jeff, we run on Amazon cloud services. They want to make money anywhere they can in the stack. We couldn't be happier.

5:03: What tech companies are impressing you? Hastings: Tech companies, not social companies, which aren't tech companies? Well, Facebook, it's amazing. It's as essential as email was a few years ago. Key for me on Facebook was trimming out business associates, just keeping people I'd send a Christmas card to. It's really fun.

5:05: Is piracy going down? Hastings: We've read that Netflix is a better solution than BitTorrent, and when we see that, we send to our studio friends. Piracy is a top 5 threat for Netflix. I dont know what we can do about it. We try to build a big user friendly service.

5:07: Now Hastings is talking about schools ... he says problem is schools are run by board of directors elected by the public. Go from school board to city council to next step.